[US Market Conditions]Stocks continue to rise, buying mainly high-tech stocks – Yen depreciated to 154.88 yen at one point – Bloomberg

The US stock market continued to rise on the 23rd. Buying increased mainly in technology stocks. On Wall Street, the earnings results of tech companies are seen as an important test of stock prices.

stock	closing price	Compared to previous business day	Rate of change
S&P 500 stock index	5070.55	59.95	1.20%
Dow Jones Industrial Average	38503.69	263.71	0.69%
Nasdaq Composite Index	15696.64	245.33	1.59%

All stocks in the Magnificent Seven, which is made up of seven major high-tech companies, rose. The rebound from last week’s sharp decline continued. Tesla, which was scheduled to announce its financial results on the evening of the 23rd, rose for the first time in eight business days.

January-March (first quarter) announced by Tesla after the end of regular trading Although the company’s earnings and sales were lower than market expectations for the third consecutive quarter, the company’s stock price rose after hours after the company announced that it would accelerate the introduction of affordable models.

“We see the recent decline as a buying opportunity, especially in the U.S., where bullish positions have been unwound and appear more neutral,” said Citigroup’s Mihir Tirodkar and Beata Mansi. There is a possibility that there will be renewed interest in the solidity of the company’s business performance.”

The S&P 500 index rose above 5,070, and the Nasdaq 100 index, which is heavy on large-cap tech stocks, rose 1.5%. Nvidia, a child of the artificial intelligence (AI) boom, led the rise in semiconductor stocks. United Parcel Service (UPS), a barometer of the economy, reported higher-than-expected profits.

UPS’s January-March profit exceeds market expectations – Efficiency efforts are a success

Morgan Stanley’s Michael Wilson said it will be difficult for U.S. companies to achieve the expected results, especially for big technology companies, and comparisons to last year’s growth will be tough.

The S&P 500 rose sharply in two business days for the first time in two months. Since the beginning of April, it had fallen more than 5% by the 19th.

Dan Wantrowski of Janney Montgomery Scott said the most important thing about the market heading into this week’s earnings call is that it is in an “oversold” state. “So a strong earnings report over the next few days will effectively fuel a larger counter-trend rally in stocks than we’ve seen in the past.”

Keith Lerner of Truist Advisory Services said the median and average declines suggest a decline of only 2% to 5% from current levels, consistent with strong support in the S&P 500. . “There is a lot of evidence that the market’s risk-reward has improved in the recent selloff, so for investors with extra cash or who are underweight equities relative to their target allocation, “I think the recent decline is an opportunity.”

In the US bond market, short-maturity government bonds rose. The index fell in the morning due to weakness in British bonds, but turned higher as S&P Global’s Purchasing Managers’ Index (PMI) preliminary results were lower than expected for both the manufacturing and services industries. The market remained firm in the afternoon as demand for the two-year bond auction was strong.

US Composite PMI at lowest level this year – employment in contraction zone for first time since 2020

national debt	Latest value	Compared to previous business day (bp)	Rate of change
US 30 year bond yield	4.73%	1.5	0.31%
US 10-year bond yield	4.60%	-0.6	-0.13%
US 2 year bond yield	4.94%	-3.6	-0.72%
		US Eastern Time	16:53

At the New York foreign exchange market, the yen exchange rate temporarily fell to 154.88 yen to the dollar. The yen weakened and the dollar strengthened for the first time in 34 years. The dollar index declined. The US Composite PMI was lower than expected, the pace of expansion of corporate activity was at its lowest level since the beginning of this year, and dollar selling became dominant.

Among the 10 major currencies, the pound’s appreciation was notable. Hawkish comments from Hugh Pill, chief economist at the Bank of England, encouraged buying.

Bank of England chief economist says to be cautious about rate cuts – ‘still has a long way to go’

money order	Latest value	Compared to previous business day	Rate of change
bloomberg dollar index	1259.54	-4.74	-0.37%
dollar/yen	¥154.83	-¥0.02	-0.01%
euro/dollar	$1.0703	$0.0048	0.45%
		US Eastern Time	16:53

On the 23rd, former US President Trump posted on Truth Social, a social media site he founded, “The dollar has hit a 34-year high against the yen. This is a disaster for the United States.” “When I was president, I spent a lot of time telling Japan and China in particular that we couldn’t do that. It sounds good to stupid people, but it’s a disaster for American manufacturing and so on,” he said. Stated.

Trump is expected to meet with Liberal Democratic Party Vice President Taro Aso, who is visiting the United States, on the evening of the 23rd. This was revealed by a person familiar with the matter.

The yen hits a new low against the dollar for the first time in 34 years – growing wariness of intervention (1)

Mr. Aso meets with Mr. Trump on the night of the 23rd during his visit to the United States and related parties – ahead of the US presidential election

Crude oil prices rebound. Although the geopolitical risk premium has shrunk, rising expectations for a U.S. interest rate cut have pushed up the market.

US stocks rose after the US PMI data fell short of market expectations. Weaker data was interpreted as bullish news and increased risk appetite.

On the other hand, in the options market, trading in preparation for a drop in crude oil prices has become active, indicating that the situation in the Middle East is unlikely to become even more tense. West Texas Intermediate (WTI) fell below its 50-day moving average for the first time since February.

The June WTI futures contract on the New York Mercantile Exchange (NYMEX) ended at $83.36 per barrel, up $1.46 (1.8%) from the previous day. The June North Sea Brent contract on London ICE ended 1.6% higher at $88.42.

Gold prices are slightly lower. However, the downturn in the US PMI supported expectations for a US interest rate cut within the year, narrowing the initial decline.

As US bond yields and the dollar fell after the PMI was released, spot gold prices at times moved into positive territory.

“Given the recent surge in gold prices, it is likely that there has been some tactical short selling,” Richard Grace, senior currency analyst and international economist at ITC Markets, said in a note.

All eyes are on U.S. economic data to be released within the week, including the personal consumption expenditure (PCE) price index, which the financial authorities focus on as an inflation indicator.

As of 2:48 pm New York time, the spot gold price was $2,325.66 per ounce, down $1.65 from the previous day. June gold futures on the New York Mercantile Exchange (COMEX) fell $4.30, or 0.2%, to $2,342.10.

Original title: ‘Mag Seven’ Surge With High-Stakes Earnings Test: Markets Wrap (excerpt)

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